In 2025, the Australian Franchising Code was updated to improve transparency and fairness. New investors now benefit from clearer financial disclosures, limits on restraint of trade, protections for early termination, and stronger enforcement, making investments safer but requiring careful due diligence.

In 2025, Australia’s updated Franchising Code of Conduct will require franchisors to disclose more upfront, ensure reasonable returns for franchisees, and limit restrictive post-termination clauses, with higher penalties for non-compliance. For new investors, it feels reassuring because of the transparency, but also adds extra compliance responsibility and costs that need careful planning.

From 2025, the Australian Franchise Code places stronger emphasis on fairness and transparency, including clearer disclosure of costs and a requirement that franchisees have a reasonable chance to earn a return. Unfair contract terms and restrictive clauses are more tightly regulated. For new investors, this means better protection but more detailed documentation and compliance upfront.